No Pause on CASS 15: Understanding the FCA’s New Safeguarding Rules

CASS 15 is now final under FCA PS25/12. Payment and e-money firms have a 9-month implementation window with go-live on 7 May 2026. Expect daily reconciliations, annual safeguarding audits and a Safeguarding Resolution Pack as standard.

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The FCA’s latest safeguarding changes make clear that the direction for payments firms is anything but relaxed. The updated Approach Document (published 7 August 2025, FCA Policy Statement PS25/12, following Consultation Paper CP23/20) introduces a strengthened Supplementary Regime — and it is already reshaping compliance expectations for payment and e-money institutions.

The FCA originally planned a two-stage approach: a temporary tightening of rules, followed by a full repeal of existing safeguarding legislation and a move to a CASS-style regime. That end-state is now on hold. Instead, firms must deliver under the Supplementary Regime while the regulator observes a full audit cycle. This pause is not a reprieve — it is a test of whether firms can meet higher standards before permanent reform.

The new requirements demand more than refreshed policies. Daily reconciliations, rapid notifications of discrepancies, and clear segregation between e-money and payment service funds are now core obligations. Shortfalls must be covered immediately, and firms must maintain detailed resolution packs to enable quick return of customer funds in the event of insolvency. Annual safeguarding audits are mandatory for firms holding relevant funds, with only the smallest providers exempt.

Payments firms also face tougher expectations on how and where funds are held. Due diligence on third parties is a continuing responsibility, diversification of accounts must be considered, and funds outside designated accounts must remain clearly identifiable. Insurance or comparable guarantees remain possible, but firms must make extension decisions at least 3 months before expiry and give the FCA at least 2 months’ notice of any first use or provider change.

Key Milestones

·  Final rules published: 7 Aug 2025 (PS25/12)

·  Implementation window: 9 months to build and evidence controls

·  Go-live date: 7 May 2026 — CASS 15 requirements apply

At Phoenix FSC, we help payments firms move beyond interpretation to execution. From safeguarding audits to governance frameworks, our team transforms regulatory expectations into practical and robust operational controls.  

Safeguarding standards are only moving one way. The time to adapt is now.